this is nightly business report with tyler mat and sue herera. >> stocks surge. the tou shoots hire, having is best day in a month but there's one sector investors are paying close attention to. >> pay raise. will millions of american workers become eligible for overtime pay? new rules expected soon, but businesses are already issuing a warning. >> not so sweet. should ads for sugary drinks have a warning likeand tobacco? a major city say yes. all that and more tonight on nightly business report for wednesday, june 10th. good evening everyone. i'm sharon especiallierso. s k the

open and didn't look back. all ten sectors were hire and nine out of ten stocks p for the d thdowndustrage cegn turned positive for the year seeing its biggest one-day gain in a month's time. at the close the blue chip dow in index soared in fheat 18the button. the nasdaq rose 62 points and s&p 500 added 25. this even as bond yields keep climbing, sitting at eight-month highs. the yield at 2.%. bob pisani at the new york stock exchange takes a look at the three reasons today for rally. >> stocks opened strong and closed strong. more than three stocks advancing for each one declining. why? there were thre primary catalysts. first, stocks were due for a bounce. the s&p 500 has been down nine

of the last 14 tradinging sessions. transports and interest rate sensitive groups have already entered correction territory. down 10% or more. from their recent highs. secon, mornin german chancellor angela merkel signalled she was willing to meet her greek counterpart in brussels to restart the stalled talks. it's unclear what compromises they're willing to offer. finally, an auction of ten-year treasuries was wellreceiv all ten sectors were up. eight of the ten were up fairly rare occurrence. that oversold bounce was evident in tech stock which had a very rough month. big names like texas instruments, microsoftel are still do on the month. a weaker dollar drove prices higher for copper, iron ore and

oil. another sign of strength, stocks advance even though interest rates continued to advance. normally, a negative for stocks, but even sectors that might be hurt, but higher rates, like utilities and homes, they rallied as well. one factor missing was volume. it was just averageting mu of e move due lack of sellers, rather than enthusiastic buyers. i'm bob pisani at the new york stock exchange. >> well, financial stos hav been getting a lot of attention from investors recently and with good reason. since that group tends to do well as interest rates rise. dominic has more on the sector that's been a standout. >> it's still early in the summer and too early to put june in the book, but a real standout in the stock markets so far this season has been the financials. it's the best perfortor among the ten in the large cap s&p 500 index. some of the nation's largest

banks are helping to power the gains. mortgage lender, wells fargo, or jpmorgan chase, all three are trading at or near record high levels and ther rea to be optimistic. >> if you look at absolute lending vo, it'sng grwi and poised to grow faster okay? second of all with the spreads rising, each of those loans is going to be more prof to the bank so, they're getting bene on botends notst more loans, making more money on each of those loans. >> the overall environment for interest rates plays a big rate. as rates rise, the conventional wisdom is that it's good for the banks and that's because banks can lend out money at higher rates and hopefulgene more profit,he r for cks is anything but clear with investment risks lingering. gl i think there nks out there and other companies and parts of the financial markets who might be taking additional

risks as far as credit quality goes. it's okay for a bank to lose business. if they're losing it because their not willing noto h c that's a >> financials haven't been getting a lot of attention over the past couple of years like health care. utilities and ey haeen grabbing a lot of hea but with a wage overall s&p 500, financials are the second biggest sector trailing only technology, so it could have a bigger than average impact on the direction of the ovell ket. >> now to two market pros for their views on what's n stocks and bft's g vnd whans fo urtfolio. at northern trust and kathy jones is a fixed income strategist with charles schwab. the move in bond yields over the past 30 days is really

something. we're pushing u at 2.5% on the ten-year bond. is the rise in yields mostly now for -- or do we have more? >> it's mostly behind us. from april lows in germany, the german blend is is up about 90 basis points, so really saw shift in the whole global bond market when we started to see signs of improvement in europe and when we got that big move off of near zero interest rates or negative interest rates in europe and that's just lifted the whole bond market globally. >> all right, boblet turn to you. equities seem to be hanging in there nicely in the face of rising interest rates. the conventional wisdom is that when rates go up stocks are generally not going to for the r cathis divergence continue? >> yeah, absolute

in fctf you look at history stocks can do very well in a rising ate ennt w teare hi beca growth. as opposed to inflation, so, but as kathy said, we thine nearing the end of this increase in rates. it's one of the rre sitivequiti tha we expect rates to remain low by any historical standard and we're trading even above our trading range and it's expected for the next six months. even if the fed moves either in september, if not earlier we really don't see much of a threat beyond what we're already seeing for the trading around 250, so that period of monetary accommodation, we thi continues and that remains supportive for equities. >> and so, bob what does that mean for investors who are looking at where they should put their equity portfolio? the rise we've seen in the european stock market has kind of carried the way for 2015. should investors be more diversified within equities and how?

>> you should always be diversified and rega of your vi on ain a arcucompanhave a ry h quality buy, looking for companies with high, sustainable roes and good growth opportunities and busines models. you have to be disciplined about finding a diversified selection of those types of comp your portfolio. we still prefer u.s. equities to international, in general we are recommending an overweight risk asset. today is a good exaf why invests neee full invested and not get too caught up in trying to pick the exact moment because the risk is you're defensive on a day like today and you miss out on a very substantial rally so wthink the most expensive asset class without doubt. bonds outperform cash equities outperform bonds over the next 12 months. >> what should i do with my bond portfolio in the face of these rising rates and is it too late

to do? >> typically, when you go into a rates hiking cycle and the fed starts to raises, time for nd mark i usually about the three months before the first rate hike and then longer term rd to piquely in te cycle because it starts to look like the fed's going to get ahead of inflation and slow down the economy and you know we think that in this cycle that's even more true because we're not starting from a point where inflation's a big ccern o economy's ovatin e feds really just starting to lift rates to get back to something that's more like normal. >> should i forgive me for interrupting but should i emphasize shorter term bonds or do a barbell with some short-term and some long or intermediate? >> we tento liar wheryou ht-term ncash, invest rate floating rate no some intermediate term bonds

that generate income. the short-term will benefit when rates go up, but you still need to earn some income. we like the intermediate term bonds for that. >> thank you both for meanwhhe f buet deficit has narrowed further in may. revenue rose faster than expected. the treasurye that's a 37% drop from the same period last year. for the first eight months of the fiscal year, the deficit strankhrank toowes20 e pris nearing a one-month high by the settlement west texas intermediate rose more than 2%. 61.43 a barrel. jackie deangeles has our report. >> crude oil prices back on the rise testing thetop mo recenading range up 58 to $62. but failing to breakthrough. the most recent rally driven by

eia inventory showihat cr inventories fell 6.8 mon barrel l week. bullish. but the department of energy also reporting that u.s. production rose to slightly more than 9.6 million barrels a day. another increase in an oversupplied market. additionally opec out with its monthly report saying it expects demand isn't likely to increase, but that oversupply will ease over the coming quarters. the data points are all over the place, but consensus is that it's borrowed demand from summer driving season that's sending crude higher. trayers looking to buy this rise into the fourth of july driving season peak but then looking to sell crude. the dollar has eased a bit against the euro, if it struggles again and the dollar soars, crude prices could turn the other way. >> still ahead is the middle class dead as we know it? a former goldman sachs partner explains why this group is so important to the economy and how it ca be re

the government proposes to regulate aircraft emissions much like power plant emissions. the epa called them a threat to human health. this could clear the way for possible adoption of international emissn standards, but don't figure on anything soon. anytime global warming enters the discussion, a pol battle usuoll awrs on l hill they've reached a dealn a ke hurdle to president obama's specific trade both parties have agreed on providing help for workers hurt by trade. that moves a vote n len

that woulde fasttr protauthor the president to friday. >> large city hiking its minimum wage, los angeles aroved hike to $15houg theatest city to do so. the vote follows similar moves in san francisco and seattle and many expect the issue to be hot on the campaign tra since the cycle heats up, kate rogers has more. >> it scores another victory. across the country there are now 29 states and washington, d.c. with a wage higher than the federal minimum of 7.25 an hour. experts say the pressure will spread to other states and in particular, bigiti the country. with 2016 op the horizon, the issue will be a taint r botemocra republicans. >> any candidat regardless of their political affiliation, is going to have to take the issue of the minimum wage on and the issue of income inequality. the economy is growing and the stock market is soar, but most americans have not seen that

translate into growth in their paycheck. many americans are becoming more and more impatient with their elected official. >> fuelling the fight are a slew of big names including mcdonald's target and walmart, all hiking wages for workers well above the federal wage floors. fast food protests which has been a steady presence across the country, has added pressure to raise wages for low income workers. but the national federation of independent busine worries the increased pressure hurt mainstream. the conservative lobbying group said small businesses pay higher wages when they can afford to. market conditions, not government policies, should trigger wage increases. gl that's a natural economic movement. what we're talking about is an arbitrary number imposed by politicians and advocates. that bears no relationship at all to the prices that consumers want to pay. and when wages are dissoesassociated

om it'ws for eomy. >> in april, congressional democrats unveiled their own plan to hike the finimum wage to 12 an y 20 and while that may not be a reality anytime soon, you can expect presidential cantes on the campaign trail to have strong opinions on why raising the wage is or i wri move. >> well, debate over raising federal minimum wage remains stalled, the obama white house is on the verge of crafting new rules on overtime pay. that could give millions of americans a big pay raise. hampton pearson explai >> any day now the labor department is is expected to propose a new rule that adjust for inflation the current threshold for overtime pay from nearly $24,000 a year to as much as 52,000. extending time and a half overtime benefits to an estimated 6 million americans. at a capitol hill hearing today

supporters say it's one way to overcome decades of wage stagnation. >> the current salary threshold for exempt employees is at half of the average hourly wage for nonproduction employees in the american economy. al >> restand d becularhit. they employee mostlurly workers. including managers. many of whom do not get overtime. >> today, a top executive from the white castle chain told lawmakers changeing the duties would impact the business model for much of the retail and restaurant industry. >> an increase in the overtime salary threshold to $808 per week would affect 1.7 million workers and would ct businesses $5.2 biyear asseing they don't make changes

to off set the cost. >> republicans are offering legislation to bloc the rule changes and business groups may file lawsuits. in the meantime, look for democrats to add overtime pay to the debate over income inequality. for nightly business report, i'm hampton pearson in washington. >> amid the raging debates over minimum wages and overtime pay our next guest says we pay far too much attention to the wealth and income gaps between rich and poor and far te ws ppenie midd ass nd why he's peter kieranen, a capitalist, former goldman sachs partner, who now devotes much of his time to the robin foundation. alsohe u thor of a new book, american mojo, restoring our middle class. you do emphasize the importance of shoring up the middle class as opposed to the constant concentration on the gap between rich and poor. but if you shore up the middle class, doesn't that help solve

the gap between the rich and poor? >> it does and one of hings that's changed that people are not focusing on, there are about 45 million poor people in the united states, which is obvioly a tand cirmsta but just above them are another 50 million who are hovering just a lost paycheck or two or a cancer diagnosis or a car wreck or some twist in life's fate away from slipping into poverty. and the challenge is just be fod ton ce aysve gotening we do. we have to find the solution by rejuvenating our mile c >> and howo th? how do we connection the dots from what we've learned in terms of the searching middle class we saw in theands? how do we translate that to what we're seeing today as we are facing an economy that is highly motivated by entrepreneurs and new technologies? >> there are two thinld divide swers ando

thbookinto two buckets. one is domestically and internationally. we ve seris abt creating first quality jobs. and secondly, we have to look for jobs that are unfilled. right now there are 4 million jobs that are not filled because of a skills gap. these are ogrammbs comp jobs nd health care worker jobs that are great because they're multir jo if you re somnto jobusuall two or three people additionally have to be hired. now, one of the things that troubles me so much s we'r focusi on howe a yeome wa gaps in the minimum wage, but the focus should be on filling these first class jobs that are available the millions in the country. >> you take your fellow percenters to task for not doing enough to address what you see as the challengesacin middle clas ysay in the book that merely redis beauting income and at the tax burden isn't going to

solve it. you have to ristr oprtunit wht ybythat a do you do it? >> i thithat'skey. look i presume the taxes on the 1% are going to go up so you've raised the match up. what are you going to do with money to help people? and ihink fexamif y imagine everyone whving i los aeles adelia l thse people, that's how many young peopween ages of 16 and 25 are what i call neat. employment, educati or training. we need to find ways we can't have a lost generation of 6.5 or 7 million young people with no hope and options. we have to take the money we have raised from taxation and other ways and deploy it so we can train these young people. they're not going to go back the to school with 15-year-olds if you're 23 in specific training programs. effort pointed at them. >> it has a lot to think about. american mojo, lost and found. thanks for being with us.

and we begin tonight's market focus with a dividend hike from caterpillar. the mining equipment maker will increase the payout t cents a share. that will be made to shareholders in august. the yield on its dividend is around 3%. shares rose 2% today to $88.48. apple music, the streaming service that the company announced this week is facing scrutiny in new york and connecticut while the attorneys general of those states are now investigating theegots apple made with music companies while developing the service. to look for signs of potential antitrust violations. despite that, shares rose 1% to $128.88. >> sharon johnson controls exploring a sale of its automotive businesses to potentially be a huge shift in the auto industry supply chain. the ceo explained the thought process behind the possible break up. >> most important thing to understand is that we have an incredible franchi business in

the automotive business. but in order for us to become a multiindustrial, it'sbeen clear, it's going tb more and more clear that we need to focus on the segments that are going to move us forward as a company and allow the automotive business to have invts it needs to be successful. >> shares popped nearly 4% to 53.59. target meanwhile increasing its dividend to 46. upping its share program by $5 billion. they accidentally revealed the news before it ff thee boar go ahead. shares up a fractio9.67 and cong up,rano takes aim at sugary drinks, but will big companies like coke and pepsi fight bac

tomorrow, we'll see if shoppers are shaking f the winter blues. also initial jobless claims and facebook will hold its annual shareholder meeting. >> food and drug administration panel had backed amgen's highly revolutionary cholesterodrug. they say the benefits outweigh the risks but that it should only be used in patients at high risk of cardiovascar disease. yesterday, a panel voted a similar drug shoue ap but again, f veryse two major cities want people to eat better and they are proposing new rules toet you to do san francisco taking aim at sugary drinks, while new york city is setting ghts salt.

sarah eisen has more. >> sweet or salty? both are coming undr fi in manhattan, officials proposed new rules today requiring chain restaurants to include a warning label on menus for items high in salt. dishes with more than the daily limit of 2300 milligrams of sodium. also, san franisthe ir citto require health warnings on ads fosuga drinks the mane pr ru sconer, he wants to educate consumeut the health risks of drinking soda. >> sugary drinks are almost half of all sugar consumed in the american diet. one 12 ounce can of soda has ten teaspoons of sugar and these drinks are absolutely fuel ingling the elope ii di thatee ng u.s., so this legislation is designed similar to the approach with cigarettes to get people to drink less.

>> the industry wasresentin coke pepsi and other beverage companies is fighting back, saying singling out one industry and one type of product does nothing to educate people about the importance of balancing calories and physical activity. >> their argumen same as saying well, cigarettes aren't the only cause of lung cancer therefore, don't regulate cigartes. e tharothe al thing peopl and drink, but here,have a particular product that is almost half the sugar in the american dilt. >>ne fac consumers are drinking less soda on their own switching to tea juice and bottled water. the industry has seen declining soda sales for the last decade. meantime, the rate of diabetes cases has increased in this country. san francisco ly h the issue on a ballot last year, a soda tax, but it failed to secure a majority needed to

pass. as far as the current proposal, san francisco supervisors will vote against next eek d if it passes and the mayor okays it, it will become ladays. >> and finally tonight, glass door is out with its list of the most loved ceos. number three charles but then mark parker. he made a big jump. last year, he was number 11. that's nightly business report for tonight. thanks for watching. >> have a great evening everybody, and we'll s you bhertomorrht.

narrator: today, americans are spending hundreds of millions of dollars on wearable devices and smartphone apps to track their fitness and health. smarr: this amazing explosion of wireless health devices is giving us the kind of feedback we've never had until now. narrator: this isn't just the latest health fad. from the number of steps walked to the genes in our bodies we can now generate our own health data. but who has access to this information, and can regulation keep up with innovation? coming up, how new technologies are helping drive a digital health revolution to hack, track and quantify our lives. [ heart beating ] announcer: support for "quest" is provided by...